On an Average Day,Town Center Hardware Receives $2,420 in Checks

question 73

Multiple Choice

On an average day,Town Center Hardware receives $2,420 in checks from customers.These checks clear the bank in an average of 2.1 days.The applicable daily interest rate is 0.025 percent.What is the maximum amount this store should pay to completely eliminate its collection float? Assume each month has 30 days.

• A)$1,152.38
• B)$1,288.15
• C)$2,109.16
• D)$4,637.33
• E)$5,082.00

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Definitions:

Rationalizing

The process of attempting to explain or justify behavior or an attitude with logical reasons, even if these are not appropriate.

Underutilizing

Not making the most effective or efficient use of a resource, person, or capability.

Overloading

A situation where an individual or system is given more work or information than can be handled comfortably or efficiently.

Skill Set

A collection of skills and abilities that an individual possesses, which can be applied in various jobs, tasks, or projects.